Civil aviation gets Rs 31.13 bn allocation in Union Budget 2023
AVIATION & AIRPORTS

Civil aviation gets Rs 31.13 bn allocation in Union Budget 2023

The allocation for the civil aviation ministry in the Union Budget has more than halved to Rs 31.13 billion for the next financial year, especially due to a sharp reduction in the amount set aside for Air India Asset Holding. For 2022-23, the revised allocation is Rs 93.63 billion which is lower than Rs 106.67 billion estimated earlier.

The budget for 2023-24, presented by Finance Minister Nirmala Sitharaman on Wednesday, has allocated Rs 31.13 billion for the ministry. This includes Rs 30.26 billion from revenue and Rs 866.6 million from capital.

The sharp reduction is mainly on account of lower money set aside for AI Asset Holding (AIAHL), a special purpose vehicle formed by the government that holds various assets of national carrier Air India.

Tata Group took over the control of Air India in January last year following the government's disinvestment process.

In the latest Budget, Rs 11.14 billion has been allocated for AIAHL under the public sector undertakings segment of the minister. For 2022-23, AIAHL was initially allocated Rs 92.59 billion, which was later revised to Rs 72 billion. However, this allocation was under the 'central sector schemes/ projects'. On the other hand, the latest budget has hiked the amount for regional air connectivity to Rs 12.44 billion for the next financial year starting April 1.

The allocation for the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS) has been increased to Rs 737.4 million and Rs 3.09 billion, respectively.

In next financial year, Airports Authority of India (AAI) is to raise Rs 34.48 billion by way of Internal and Extra Budgetary Resources (IEBR). "Fifty additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity," Sitharaman said in her Budget speech.

Also Read
India to build electric-powered replicas of steam locomotives
J&K receives revenue worth Rs 35,581 cr for 2023-24

The allocation for the civil aviation ministry in the Union Budget has more than halved to Rs 31.13 billion for the next financial year, especially due to a sharp reduction in the amount set aside for Air India Asset Holding. For 2022-23, the revised allocation is Rs 93.63 billion which is lower than Rs 106.67 billion estimated earlier. The budget for 2023-24, presented by Finance Minister Nirmala Sitharaman on Wednesday, has allocated Rs 31.13 billion for the ministry. This includes Rs 30.26 billion from revenue and Rs 866.6 million from capital. The sharp reduction is mainly on account of lower money set aside for AI Asset Holding (AIAHL), a special purpose vehicle formed by the government that holds various assets of national carrier Air India. Tata Group took over the control of Air India in January last year following the government's disinvestment process. In the latest Budget, Rs 11.14 billion has been allocated for AIAHL under the public sector undertakings segment of the minister. For 2022-23, AIAHL was initially allocated Rs 92.59 billion, which was later revised to Rs 72 billion. However, this allocation was under the 'central sector schemes/ projects'. On the other hand, the latest budget has hiked the amount for regional air connectivity to Rs 12.44 billion for the next financial year starting April 1. The allocation for the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS) has been increased to Rs 737.4 million and Rs 3.09 billion, respectively. In next financial year, Airports Authority of India (AAI) is to raise Rs 34.48 billion by way of Internal and Extra Budgetary Resources (IEBR). Fifty additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity, Sitharaman said in her Budget speech. Also Read India to build electric-powered replicas of steam locomotives J&K receives revenue worth Rs 35,581 cr for 2023-24

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